Quote from: Fortify on Today at 12:17:28 PM

Quote from: Abiky on May 17, 2024, 11:23:50 AM

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

There is a long way to go before CBDC's ever become a contender for existing payment systems, but then I don't understand why they would even be replaced anyway? These financial services could adapt to become secure wallets for storing these digital currencies and are likely investigating that sort of transition even now. However CBDC's are still in the most basic stage, even just at the information and research stage, and nowhere near the full scale implementation stage and would take potentially decades to earn the trust of the average consumer. There may even be push back from consumers who don't necessarily see any additional benefits and older generations can be particularly slow to adjust to new technologies.

We have been discussing CBDC for many years but one thing we need to realize is that many governments do not even intend to develop and deploy CBDC. So, I also doubt that CBDC will be implemented soon and replace current payment methods or will compete directly with cryptocurrencies as many people are imagining.

I know there have been some governments issuing CBDCs like China and Nigeria...But I remember earlier this year, the Fed Chairman also said that they have no intention or plan to issue CBDC to replace USD, and my country has not made any announcement about this.

https://cryptoslate.com/fed-chair-powell-confirms-regulator-has-no-plans-to-recommend-adopt-cbdcs/